ASX / Media Release
      27 November 2018


      Santos completes acquisition of Quadrant Energy
      Santos today announced that it has completed the acquisition of Quadrant Energy
      (Quadrant). The effective date of the transaction is 1 January 2018.

      On completion Santos paid an amount of US$1.93 billion, comprising the purchase price of
      US$2.15 billion less completion adjustments and cash acquired.

      The completion amount was fully funded from Santos’ existing cash resources and
      US$1.2 billion of new debt facilities.

      Stronger operating performance and free cash flow generation since 30 June means Santos
      is now expecting gearing to be approximately 33% at year-end.

      Santos Managing Director and Chief Executive Officer Kevin Gallagher said: “The acquisition
      of Quadrant is value accretive for Santos shareholders and is consistent with our strategy to
      build and grow our core assets around existing infrastructure and become Australia’s leading
      domestic natural gas supplier.”

      “Santos has now increased its ownership and become the operator of a high quality portfolio
      of low cost, long-life conventional Western Australian natural gas assets with stable cash
      flows.”

      “Santos knows these assets well and has enjoyed a long-established relationship with
      Quadrant, which has operated our WA natural gas assets for many years.”

      “A key benefit of the transaction is the diversification of the Santos revenue base to include
      strong operating cash flow from long-term CPI-linked gas supply contracts at a time when the
      oil price continues to be volatile.”

      “The Quadrant acquisition lowers our forecast 2018 proforma free cash flow breakeven oil
      price to approximately $32 per barrel.”

      “The portfolio also includes a leading position in the highly prospective Bedout Basin,
      including the recent significant oil discovery at Dorado.”

      “This acquisition strengthens our ability to fund our growth activities in WA, northern Australia
      and PNG, and the sustainable dividend through the cycle.”

      “We look forward to welcoming Quadrant’s staff to Santos and integrating our Western
      Australian operations,” Mr Gallagher said.

      UBS and JB North & Co acted as financial advisers and Herbert Smith Freehills acted as
      legal advisers to Santos.

      Ends.


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